The Federal Government and the National Assembly have reaffirmed their commitment to strengthening coordination between federal and state electricity regulators as Nigeria moves towards a multi-tier electricity market.
The commitment was expressed at a workshop in Abuja focused on “Legal, Policy and Regulatory Harmonisation between Federal and State Institutions on the Decentralisation of the Nigerian Electricity Supply Industry (NESI).”
The workshop examined the regulatory and institutional implications of Nigeria’s ongoing electricity market reforms.
In his remarks, the Special Adviser to the President on Power and Chairman of the Presidential Task Force on Power Sector Reset and Restoration, Mr Rilwan Lanre Babalola, described electricity as a critical foundation for industrialisation, economic competitiveness, job creation and national prosperity.
He urged participants to approach the transition as partners working towards the development of one Nigerian electricity market rather than as separate institutions focused solely on protecting individual jurisdictions.
According to him, the transition to a more decentralised electricity market will naturally create new areas of interaction between federal and state institutions.
He noted that questions regarding regulatory boundaries, market oversight, technical standards and commercial arrangements should be viewed as part of the natural process of institutional evolution.
“Every major reform creates new opportunities. It also creates new interfaces,” Babalola said.
The decentralisation of Nigeria’s electricity market is expected to provide states with greater opportunities to participate in electricity generation, distribution and regulation within the framework established by law.
However, the development also creates the need for clear coordination between different levels of government.
Without effective collaboration, overlapping responsibilities could create regulatory uncertainty and potentially discourage investment in the sector.
The workshop therefore focused on the need to harmonise legal, policy and regulatory frameworks to ensure that the transition produces a more efficient and reliable electricity market.
Stakeholders emphasised the importance of ensuring that federal and state institutions understand their respective responsibilities while maintaining effective communication and cooperation.
The electricity sector remains central to Nigeria’s economic development.
Reliable power is essential for manufacturing, small businesses, healthcare institutions, educational facilities and households.
The transition to a multi-tier electricity market therefore represents a significant opportunity to address some of the longstanding challenges affecting the sector.
However, its success will depend on the ability of regulators and policymakers to establish clear rules and maintain effective coordination.
The Federal Government and National Assembly’s renewed commitment to coordinated regulation signals an effort to ensure that decentralisation strengthens rather than fragments the Nigerian electricity market.
For investors and electricity consumers, a clear and predictable regulatory environment could help support new investments and improve service delivery
